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After months of debate and scrutiny, the Employment Rights Act 2025 has now received Royal Assent. This confirms one of the most significant updates to UK employment law in a generation, with wide ranging implications for care providers.
The reforms will be introduced in phases through to January 2027. While this gives employers time to prepare, the scale of change means early planning is essential to avoid disruption, cost pressure or compliance risk.
At Quality Care Group, we support care organisations across the UK to understand legislative change and respond in a practical, proportionate way. Below we outline the key reforms and what they mean for your care business.
The qualifying period for unfair dismissal protection will reduce from two years to six months. The existing compensation cap will also be lifted.
This change significantly increases risk for employers, particularly where probation processes, documentation and manager capability are inconsistent. Robust early performance management will become even more important.
The Employment Rights Act will be introduced gradually, with changes rolling out between now and January 2027.
While this provides breathing space, it also creates complexity. Care providers will need to track multiple implementation dates while continuing to meet CQC expectations and operational pressures.
Eligible employees will gain immediate access to paternity leave and unpaid parental leave. Previous service requirements will be removed.
This will require updates to policies, contracts and HR systems, particularly for care providers with high staff turnover or large frontline teams.
The removal of the lower earnings limit and waiting period for Statutory Sick Pay represents a major shift.
More workers will qualify and payments will start sooner. Many care employers are concerned this could increase absence risk, particularly in lower paid roles. Clear absence policies and consistent management will be essential.
Employers will now have a legal duty to take all reasonable steps to prevent sexual harassment and other forms of discriminatory harassment, including harassment by third parties.
Sexual harassment complaints will also be classed as protected whistleblowing activity, increasing legal exposure if concerns are mishandled.
The time limit for bringing employment tribunal claims will double from three months to six months.
This extends the period of legal exposure for employers and reinforces the importance of accurate records, fair processes and early resolution of disputes.
The Act introduces tighter controls around fire and rehire, reflecting growing scrutiny of how employers manage contractual change.
Care providers planning restructures or contractual updates will need to take a more cautious, well documented approach.
The Act modernises trade union frameworks, including simplified recognition, electronic balloting and stronger rights of access.
Employers will also have a new duty to inform workers of their right to join a trade union. This is particularly relevant in adult social care, where union activity is expected to increase.
Key reforms include doubling the maximum protective award for collective redundancy to 180 days pay and introducing measures to prevent abuse of zero and minimum hours contracts.
These changes will impact workforce planning, cost modelling and risk exposure for care organisations using flexible staffing models.
The Act strengthens flexible working rights, requiring refusals to be reasonable and clearly explained.
Additional protections are introduced for pregnant employees and new mothers, alongside a new statutory right to one week of unpaid bereavement leave.
The creation of a Fair Work Agency signals tougher enforcement, alongside new regulation of umbrella companies.
In adult social care, regulations will also establish the Fair Pay Agreement Adult Social Care Negotiating Body, with implications for pay structures and workforce costs.
While further detail will follow through secondary legislation, care employers should not wait.
Early action allows you to spread costs, update policies gradually, train managers effectively and reduce legal risk. A reactive approach increases disruption and pressure on already stretched teams.
Navigating the Employment Rights Act 2025 does not need to be overwhelming. With the right advice, care providers can stay compliant while protecting service delivery and workforce stability.
If you would like practical guidance tailored to your care organisation, we are here to help.
Speak to our people and risk specialists
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